European, Asian Stocks Advance on Economic Reports From China

By Sarah Jones

Sept. 11 (Bloomberg) -- European and Asian stocks rose, sending the MSCI World Index higher for a seventh day, as Chinese economic data that exceeded estimates and increased forecasts for oil demand bolstered the earnings outlook for commodity producers.

Total SA climbed for a sixth straight day and BHP Billiton Ltd. gained 1.5 percent as crude and copper advanced and reports showed industrial production and investment growth in China accelerated. Axa SA and Old Mutual Plc rose more than 1.7 percent after Bank of America Corp. upgraded the insurers.

The MSCI World of 23 developed countries gained 0.4 percent at 8:12 a.m. in London, while Europe’s Dow Jones Stoxx 600 Index advanced 0.6 percent. The regional gauge has climbed 3.4 percent this week, the biggest advance since July. The rally has driven valuations on the index to 46.4 times profit, the highest level since 2003, weekly Bloomberg data show.

U.S. stocks capped a five-day rally yesterday, the longest streak for the Standard & Poor’s 500 Index since November, as the International Energy Agency said China’s consumption and stronger-than-estimated oil use in the U.S. will boost demand. Treasury Secretary Timothy Geithner also said the government is preparing to withdraw some of its support for financial markets as it moves from “crisis response to recovery.”

U.S. Futures

Futures on the S&P 500 were little changed today, while the MSCI Asia Pacific Index gained 0.3 percent. China’s Shanghai Composite Index rose 1.8 percent after the statistics bureau said industrial production rose 12.3 percent in August, up from the previous month.

Total added 0.4 percent to 41.90 euros as crude oil for October delivery increased as much as 0.6 percent to $72.38 a barrel in New York.

World oil demand is likely to average 85.7 million barrels a day next year, according to a monthly report from the IEA. That’s 450,000 barrels a day more than estimated in August.

BHP, the world’s largest mining company, added 1.5 percent to 1,689.5 pence and Rio Tinto Group, the third-biggest, increased 1.7 percent to 2,587 pence. Copper and tin climbed on the London Metal Exchange.

ArcelorMittal, the world’s largest steelmaker, increased 1.7 percent to 26.43 euros after Steel Dynamics Inc., the third biggest U.S. steelmaker, said third-quarter profit will be higher than the company forecast in July, helped by strong orders for flat-rolled steel.

ThyssenKrupp AG, Germany’s biggest steelmaker, gained 1 percent to 24 euros.

Axa advanced 2.6 percent to 17.05 euros after Bank of America raised Europe’s second-largest insurer to “buy” from “neutral.” Old Mutual added 1.7 percent to 94.75 pence. Bank of America upgraded the biggest insurer in Africa to “neutral” from “underperform.”

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.